Some Barnstead, Middleton residents flabbergasted by potential water rate increase

Saturday

Aug 30, 2008 at 3:15 AMAug 30, 2008 at 6:06 AM

By JOHN QUINN

ALTON — Residents from Barnstead and Middleton were flabbergasted about their water company's request to raise rates by 311 percent and pleaded for state officials to understand that many customers could not afford to pay if it is approved.

About 75 area residents, including a handful of Middleton customers, voiced their questions, concerns and frustrations about the proposal to the N.H. Public Utilities Commission during a formal hearing at Prospect Mountain High School on Tuesday . Members of the PUC and Pittsfield Aqueduct Company met and spoke with residents informally afterward.

This was the second of three public statement hearings and the PUC also heard from area residents on Aug. 7 in North Conway and on Wednesday at Pittsfield Middle High School.

"It's an opportunity to tell us your concerns about the company's request," PUC Chair Thomas Getz said, adding public input will help guide the PUC and members of the N.H. Office of Consumer Advocates during the discovery process.

On May 2, Pittsfield Aqueduct Company also petitioned the N.H. Public Utilities Commission to temporarily increase its rates by 179 percent, retroactively as of June 1 and seeks for a permanent increase to offset capital and operating costs.

The water company, which is owned by Pennichuck Corporation, currently provides water to about 650 customers in Pittsfield and about 1,100 residents of Sunrise Estates in Middleton, Locke Lake Colony in Barnstead and Birch Hill in North Conway.

Jerri White, president of Sunrise Estates Association, said the water company spent $2.3 million for the repairs in Barnstead, but only $76,000 in Middleton.

"How can we be paying the same rate as Locke Lake or Birch Hill when we are by ourselves?" White asked, adding the association has filed a petition with the PUC to be heard during the proceedings.

Middleton resident William Hanlon asked the PUC to consider the breakdown of cost for the repairs by town and suggested customers should not be charged for repairs that did not benefit them — especially since the water from the four communities is not connected.

Hanlon, who is retired, said he currently pays about $30 a month for water and couldn't afford to pay $100 per month on his income.

Middleton resident Janet Kalar said she had not seen any changes to the water quality or pressure since the improvements were make in Sunrise Estates. She added she has already looked into installing a well with her neighbors.

"I thought monopolies were illegal," Kalar said, adding some residents will not have the ability to install a well due to the high cost or limited property size.

Pennichuck is the largest investor-owned water company in the state and serves 120,000 customers in 28 communities within New Hampshire and Massachusetts, according to its website www.pennichuck.com.

Getz said the PUC's three-member board of commissioners have not formed an opinion on the company's request and will determine whether to approve it or not as part of a formal process, similar to court proceedings. He added commissioners and PUC staff cannot discuss the merits of the case unless all parties are notified.

The PUC plans to discuss the proposed temporary rate increase Oct. 7 from 10 a.m. to 4:30 p.m. in Hearing Room A — Room 103 — at 21 South Fruit St. in Concord. The PUC scheduled a hearing to discuss the proposed permanent rate increase March 26, 2009, according to Getz.

Steve Camerino, one of the water company's attorneys, said the company had to repair, replace or resolve "many significant problems" left from the previous owners. He added the proposed increases to water rates will allow the company to pay for the improvements that have already been made and for work that will be done in the near future.

Camerino, of McLane, Graf, Raulerson & Middleton Professional Associates, said the company understands the proposed rate is high, but is necessary.

The company provided a fact sheet which described the status of the systems at Sunrise Estates and Locke Lake when the company purchased them and the improvements that have been made. Some of the facts included:

n There are 832 customers in Barnstead and 79 in Middleton.

n In Sunrise Estates, the company replaced two well pumps since all three bedrock wells failed in the first year of operation, installed two gate complexes, eliminated a confined space, updated wiring and installed meters at all residences.

n In Locke Lake, the company added a well to the seven existing bedrock wells, installed treatment systems to filter out arsenic, iron and manganese — which exceeded standards in the Safe Water Drinking Act — replaced pumps that were wired backward, installed at 25,000-gallon storage tank to meet peak usage demands and working meters at all residences.

Don Ware, president of the water company, said spreading out the cost of the repair to all of the customers in the four communities, many who are seasonal, protects expenses from becoming too great in one area. He added even though Sunrise Estates did not require a lot of repairs, it may benefit from this policy if more expensive work is needed 10 to 15 years from now.

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